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Why is the Suncorp share price slipping today?

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Suncorp Group Ltd (ASX: SUN) shareholders might be wondering why the share price has fallen 2.07% to $11.35 today.

The insurance giant released its FY2022 scorecard on Monday, reporting a mixed performance across its key financial metrics.

In turn, the board elected to significantly reduce its upcoming final dividend by 65% as a result of the challenging year.

Let’s take a look below at why Suncorp shares are falling during mid-morning trade.

Shareholders set eyes on the Suncorp dividend

The Suncorp share price is in reverse following the company’s shares trading ex-dividend today.

The ex-dividend date is particularly important as it determines which shareholders will receive the company’s latest dividend.

If you held Suncorp shares at yesterday’s market close, you will be eligible for the final dividend.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

For those eligible for Suncorp’s final dividend, shareholders will receive a payment of 17 cents per share on 21 September.

The dividend is fully franked which means investors will receive tax credits to put to their next tax bill.

Management noted that the full-year dividend payout of 75% of cash earnings is towards the top of the target payout ratio range of 60% to 80%.

You can also elect for the dividend reinvestment plan (DRP) which will add a portion of shares to your portfolio instead. This will be based on a 10-day volume-weighted average price (VWAP) from 18 August to 31 August.

There is no DRP discount and the last election date to opt in is on 16 August.

Suncorp share price summary

For 2022, Suncorp shares have gained around 2% despite being heavily impacted by inflationary movements and market volatility.

The S&P/ASX 200 Financials (ASX: XFJ) sector has treaded the other way, down 2% over the same timeframe.

Based on today’s price, Suncorp commands a market capitalisation of approximately $14.46 billion and has a trailing dividend yield of 5.67%.

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